Name: Grade & Section:

Subject: Business Mathematics Teacher: Darlene Camral-Martin Score:

Lesson: Quarter 2 Week 1 LAS 1

Activity Title: Commissions
Learning Target(s): Illustrate the different types of commissions
Reference(s) : Business Math SILM,
LAS Writer: Darlene C. Martin
Content Validator/s:

COMMISSION
Commission is a payment used mainly for sales people. It is a percentage of the selling price
of an item sold or may be a percent of the value of sale.
Types of Commission
1. Straight Commission. It is paid on every sale transaction. It is where an employee gets his entire
pay.

2. Salary Plus Commission. It is the most common commission structure. It is where an employee
receives a base salary and additional compensation in the form of commission.
Steps to Compute Commission and Total Pay
Step 1: Commission = Amount Sold x Rate of Commission
Step 2: ( If there is a salary)
Total Gross Pay = Salary + Commission
Total Gross Pay is the salary of hourly pay plus the commission

Example 1: Find the commission

Jaycee is a real estate agent and earns a 3% commission on each home sale. If he sells a
home for Php 2, 400, 000, how much commission did he receive?
Amount of sales = Php 2, 400,000
Commission rate = 3% or 0.03
Commission = 2, 400, 000 x 0.03
= 72, 000
Therefore, Jaycee received a commission of Php 72, 000.00
Example 2: Find the total pay
Gianna is paid a weekly salary of Php 2, 800 plus a commission of 4% of the profits made by
the company on the products she sells. How much does Gianna earn in a week during which an Php
85, 000 profit was generated by her sales?
Weekly salary = Php 2, 800 Commission rate = 4% or 0.04
Amount of sales = Php 85, 000
1) Commission = 85 000 x 0.04
= 3, 400
2) Total Weekly Gross Salary
= 2, 800 + 3, 400
= 6, 200
Gianna earns Php 6, 200 in a week.
Example 3: Find the commission rate
If a shoe salesman is paid a Php 250 commission on sale of Php 2, 500, what is his
commission rate?
Commission =Php 250
Amount of sale =Php 2, 500
Commission = Amount of sales x Commission rate
250 = 2, 500 x rate
2,500 2,500
rate = 0.1
Therefore, salesman’s commission rate is 10%.
3. Commission Based on Quota.
Some employees only receive a commission when they reach a certain amount of sales or
quota. Those who receive this type of commission usually earn a salary or an hourly rate in addition
to the commission.
Steps to Compute Commission Based on Quota and Total Pay
Step 1: Commission = ( Amount Sold – Quota ) x Rate of Commission
Step 2: ( If there is a salary )
Total Gross Pay = Salary + Commission
Example: Patricia receives a basic monthly salary of Php 13, 000. As a saleslady, she must reach
Php 25, 000 worth of items per month. Aside from the basic salary, she is entitled to a 6.5%
commission in excess of the monthly quota. If Patricia sold Php 44, 000 worth of items in a month,
what is her total earnings for the month?
Monthly salary = Php 13, 000 Commission rate = 6.5% or 0.065
Quota = Php 25, 000 Amount of sales = Php 44, 000
1. Commission = ( 44 000 – 25 000 ) x 0.065
= 19 000 x 0.065
= 1, 235
2. Total Gross Pay
= 13 000 + 1 235
= 14 235.00
Therefore, Patricia’s total earnings is Php 14, 235.00
4. Graduated Commission.
An employee who is paid a graduated commission is paid an increasing rate of commissions
as the amount of sales increases. This commission focuses on performance and is intended to
provide bigger sales to the company.
Steps to Compute Commission under a Graduated Rate Plan
Step 1: Calculate each level’s commission; multiply each level’s sales by the level’s
commission rate
Step 2: Add the products computed in Step 1 to determine the total commission
Example: Find the total commission and total pay
Migo is earning Php 18 000 as his basic salary and was offered a compensation package
where he gets 10% commission on the first Php 30 000 sales and 12% for sales in excess of Php 30
000. On his first month, his sales have a total of Php 45 000. How much was his total commission
and total gross pay?
Basic salary = Php 18 000 Commission rates:
Amount of sales = Php 45 000 10% for Php 30 000
12% in excess of Php 30 000
1.) Commission 1 = 30 000 x 0.10
= 3 000
2.) Commission 2 = ( 45 000 – 30 000 ) x 0.12
= 1 800
Total Commission = 3 000 + 1 800
= 4 800
Therefore, Migo’s total gross pay is Php 22 800.00

Reflection:
If you were to choose, which among commission do you want to receive? And why?
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Name: Grade & Section:
Subject: Business Mathematics Teacher: Darlene Camral-Martin Score:

Lesson: Quarter 2 Week 1 LAS 2

Activity Title: How Much Is My Commission?
Learning Target(s): Compute commissions on cash basis and commission on instalment basis
Reference(s) : Business Mathematics SILM, ADM
LAS Writer: Darlene C. Martin
Content Validator/s:

Commission on Cash Basis and Commission on Installment Basis

a. Commission on Cash Basis
The process of computing for the commission on cash basis is similar with the process of
straight commission.
Example 1: Mike works at ABC Gadget Store. For every cash purchase of a cell phone, he gets
6.1%commission. In a particular month, he was able to sell 10 cellphones costing PhP18,000 each.
How much was his total commission for such cash sales?
Solution: Total Sales = PhP18,000/cellphone x 10 cellphones = PhP180,000
Cash commission =PhP180,000 x 6.1%
= PhP180,000 x 0.061
= PhP10,980
b. Commission on Installment Basis is a commission not based on sales, but it is a commission
based on the collection or what we call payments by buyers. Instalment means that the buyers didn’t
pay at once.

Example 2: Mr Watson works in a cellphone shop that offers him 3% on every sale he can make. He
made sale worth Php 80 000 that can be paid in an instalment of Php 10 000 per month for 8
months. How much will be his monthly commission? How much is the total commission he can get?
Solution: Commission Rate = 3% or 0.03
Monthly payment = Php 10 000
Commission Rate x Payment
= 0.03 x 10 000
= Php 300 is his monthly commission

= 300 x 8 months
= Php 2 100 is his total commission
Activity: How Much Is My Commission?
Read carefully and solve the problem.
At ABC Gadget Store, some items are paid on installment basis through credit cards.
Mike was able to sell 10 cellphones costing PhP18,000 each. Each transaction is payable in 6
months equally divided into 6 equal installments without interest. Mike gets 2% commission on
the first month for each of the 10 cell phones. Commission decreases by 0.30% every month
thereafter and computed on the outstanding balance for the month. How much commission
does Mike receive on the first month? On the second month? On the third month? On the
fourth month? On the fifth month? On the sixth month? At the end of installment period, how
much will be his total commission?

Name: Grade & Section:

Subject: Business Mathematics Teacher: Darlene Camral-Martin Score:

Lesson: Quarter 2 Week 1 LAS 3

Activity Title: Down Payment, Gross balance and Current Increased Balance
Learning Target(s): Compute down payment, gross balance and current increased balance
Reference(s) : Business Mathematics SILM/ADM
LAS Writer: Darlene C. Martin
Content Validator/s:

Down Payment
The Down payment is a first payment that one makes when one buys something with an
agreement to pay the rest later. But how do we obtain the downpayment?
Example 1: Down payment
Mr. Hudson wanted a car that needs an 18% down payment. The car that she wanted costs
Php 3 500 000. How much would she pay?
Solution: 18% ---- 0.18
Down payment = 0.18 x Php 3, 500, 000
= Php 630, 000
Thus, Mrs. Hudson’s down payment is Php 630, 000 to avail the car.
Gross Balance
It refers to the total amount of money a bank has on deposit before adjusting for uncleared
checks or deposits, as well as reserve requirements. It is also a measure of what the bank will soon
appear on its books. It can also called a Book balance.
Example 2: Gross Balance
Assuming that you have a total of Php 30, 000 on your card and you deposited this day a
check that amounts to Php 10, 000. Your bank passbook currently contained Php 40, 000 but you can
only withdraw Php 30, 000 until tomorrow; this is your gross balance because your check has been
cleared.
Increased Balance
It refers to the total amount you have to pay that includes penalties or interest incurred by
unpaid balance from a loan or payment you are supposed to have made but was not able to do so.
Example 3: Increased Balance
The due for this month’s credit is Php 2, 500, and the bank requires a payment of 5% minimum
for the total amount due. If the card holder only pays the minimum 5%, he/she will get an additional
penalty of 2%. How much will be the increased balance?
Solution:
The due is Php 2, 500 and the minimum payment is 5% of this due.
Php 2, 500 x 0.05 = Php 125, this is the only amount you apid.
The remaining balance is:
Php 2, 500 – Php 125 = Php 2, 375
Since you will have a penalty of 2%
Php 2, 375 x 0.02 = Php 47.50
Your current increased balance will be
Php 2, 375 + Php 47.50 = Php 2, 422.50
Although you paid Php 125 for the minimum required payment, because of this you got a
penalty so it only deducts a total of Php77.50.

Name: Grade & Section:

Subject: Business Mathematics Teacher: Darlene Camral-Martin Score:

Lesson: Quarter 2 Week 2 LAS 1

Activity Title: Solve! Solve! Solve!
Learning Target(s): Solve problems involving interests and commissions
Reference(s) : Business Mathematics SILM
LAS Writer: Darlene C. Martin
Content Validator/s:

Interest
It refers to the method of calculating the interest amount for some principal amount of money.
The formula for simple interest is:
Interest = PRT, where
P stands for Principal – the amount of borrowed money
R stands for Rate – the percentage
T stands for Time – in years/month
Maturity Value = Interest + Principal Amount
Example 1:
Molly borrowed money worth Php 36, 000 per annum with an interest rate of 12% per month
for 6 months. How much will be the maturity value?
Formula: I = PRT
Given: Principal = Php 36, 000
Rate = 12% or 0.12
Time = 6 months or 6/12 ( since it is per annum)
Solution:
I = PRT
I = 36, 000 x 0.12 x 6/12
I = Php 2, 160
Maturity Value = Interest + Principal
= Php 2, 160 + Php 36, 000
= Php 38, 160

Activity: Complete the table below.

Rate Time Principal Interest Maturity Value
( in years )
3% 5 Php 13, 100 _____________ _____________

__________ 7 Php 10,000 Php 7, 000 ____________+

5% __________ __________ Php 2, 000 Php 8, 000

Name:____________________________Subject: Business Mathematics__ Score:_____________

ASSESSMENT:
Solve the following problems. 5 pts each
1. Juan makes money by commission rates. He gets 15% of everything he sells. If Juan sold
PhP230,000 worth of items this month, what is his salary for the month?

2. Mark makes PhP12,000 a month plus some money by commission rates. He gets 8% of everything
he sells. If Mark sold PhP60,000 worth of items this month, what is his salary for the month?

3. John receives PhP10,000 as monthly salary. As an agent, his monthly quota is PhP50,000 worth of
beauty products for which he gets 5% commission on all sales beyond his monthly quota. If he sold
PhP75,000 worth of beauty products this month, what is his total salary for this month?

4. A sales agent receives PhP12,000 a month corresponding to a sales of PhP30,000 worth of goods.
Furthermore, he receives an additional 6% commission for all sales beyond his monthly quota but not
greater than PhP50,000. An additional 3% commission is for sales beyond PhP50,000. If his sales is
PhP70,000 for the month, how much is his salary for the month?

5. A tutor at ABC Learning Center receives a monthly base pay of PhP8,000 corresponding to a
PhP5,000 tutorial fee input to the Center. He gets a share of 15% of all tutorial fees beyond the
mandatory PhP15,000 input. If each student he handles pays PhP6,000/month on tutorial fees and he
has five students for the month, how much share does he receive beyond his base pay?

6. A salesperson gets a commission for his sales based on the following scale: 6% on all sales 5% on
all sales between PhP50,000 and PhP100,000 4% on all sales over PhP100,000 If his total sales was
PhP150,000, what is his gross pay?

7. A real-estate agent receives a 3% commission of PhP300,000 for selling a house. What was the
price of the house?

8. An appliance center agent sold a set of kitchen utensils for PhP20,000 and got a PhP600
commission. What was the commission rate?

9. Miguel earns a commission of 10% which is PhP10,000. How much did he sell?

10. Carlo sold his house for PhP8,000,000. The real-estate agent got a 5% commission from the
sales. From his commission, he has to pay BIR tax and other obligations required for the transfer of
ownership of the property to the buyer. This expense represents 6% of his total commission. How
much net amount will he receive?
1. Juan makes money by commission rates. He gets 15% of everything he sells. If Juan sold PhP230,000 worth of items
this month, what is his salary for the month? 2. Mark makes PhP12,000 a month plus some money by commission rates.
He gets 8% of everything he sells. If Mark sold PhP60,000 worth of items this month, what is his salary for the month? 3.
John receives PhP10,000 as monthly salary. As an agent, his monthly quota is PhP50,000 worth of beauty products for
which he gets 5% commission on all sales beyond his monthly quota. If he sold PhP75,000 worth of beauty products this
month, what is his total salary for this month? 4. A sales agent receives PhP12,000 a month corresponding to a sales of
PhP30,000 worth of goods. Furthermore, he receives an additional 6% commission for all sales beyond his monthly
quota but not greater than PhP50,000. An additional 3% commission is for sales beyond PhP50,000. If his sales is
PhP70,000 for the month, how much is his salary for the month? 5. A tutor at ABC Learning Center receives a monthly
base pay of PhP8,000 corresponding to a PhP5,000 tutorial fee input to the Center. He gets a share of 15% of all tutorial
fees beyond the mandatory PhP15,000 input. If each student he handles pays PhP6,000/month on tutorial fees and he
has five students for the month, how much share does he receive beyond his base pay? 6. A salesperson gets a
commission for his sales based on the following scale: 6% on all sales 5% on all sales between PhP50,000 and
PhP100,000 4% on all sales over PhP100,000 If his total sales was PhP150,000, what is his gross pay? 7. A real-estate
agent receives a 3% commission of PhP300,000 for selling a house. What was the price of the house? 8. An appliance
center agent sold a set of kitchen utensils for PhP20,000 and got a PhP600 commission. What was the commission rate?
9. Miguel earns a commission of 10% which is PhP10,000. How much did he sell? 10. Carlo sold his house for
PhP8,000,000. The real-estate agent got a 5% commission from the sales. From his commission, he has to pay BIR tax
and other obligations required for the transfer of ownership of the property to the buyer. This expense represents 6% of
his total commission. How much net amount will he receive